Supreme Court of Missouri
en banc
March 7, 2016
Effective July 1, 2016
Effective July 1, 2016
In re:
Day - to - Day
___________________________
PATRICIA BRECKENRIDGE
Chief Justice
Repeal of subdivision (f) of subdivision 4-1.15, entitled "Safekeeping Property," and subdivision 4-1.22, entitled "File Retention," of Rule 4, entitled "Rules of Professional Conduct," and in lieu thereof adoption of a new subdivision (f) of subdivision 4-1.15, entitled "Client Trust Accounts and Property of Others," and a new subdivision 4-1.22, entitled "Retaining Client Files."
1. It is ordered that effective July 1, 2016, subdivision 4-1.15(f) and subdivision 4-1.22 of Rule 4 be and the same are hereby repealed and a new subdivision 4-1.15(f) and a new subdivision 4-1.22 adopted in lieu thereof to read as follows:
4-1.15 Client Trust Accounts and Property of Others
Client trust account records may be maintained by electronic, photographic, or other media provided that they otherwise comply with Rules 4-1.145 to 4-1.155 and that printed copies can be produced. These records shall be readily accessible to the lawyer.
Upon dissolution of a law firm or of any legal professional corporation, the partners shall make reasonable arrangements for the maintenance of client trust account records. Upon the sale of a law practice, the seller shall make reasonable arrangements for the maintenance of client trust account records.
Complete records shall include at a minimum:
4-1.22 Retaining Client Files
A lawyer shall securely store a client's file for six years after completion or termination of the representation absent other agreement between the lawyer and client through informed consent confirmed in writing. Such informed consent confirmed in writing may be made between the lawyer and the client at any point during the six years after completion or termination of the representation. If the client does not request the file within six years after completion or termination of the representation, the file shall be deemed abandoned by the client and may be destroyed.
The six year client file retention requirement shall apply to all client files where the completion or termination of the representation occurs on or after July 1, 2016. All client files where the completion or termination of the representation occurs prior to July 1, 2016, shall be governed by the previously required 10 years.
A lawyer shall not destroy a file pursuant to this Rule 4-1.22 if the lawyer knows or reasonably should know that:
Items in the file with intrinsic value shall never be destroyed.
A lawyer destroying a file pursuant to this Rule 4-1.22 shall securely store items of intrinsic value or deliver such items to the state unclaimed property agency.
The file shall be destroyed in a manner that preserves client confidentiality.
A lawyer destroying a file pursuant to this Rule 4-1.22 shall maintain the written record of the client’s consent of destruction for at least six years after completion or termination of employment.
Client files, except for items of intrinsic value, may be maintained by electronic, photographic, or other media provided that printed copies can be produced. These records shall be readily accessible to the lawyer.
Upon dissolution of a law firm, the lawyers shall make reasonable arrangements for the maintenance of client files. Upon the sale of a law practice, the seller shall make reasonable arrangements for the maintenance of client files, which includes written notice to a client as to the location of the client’s file.
A lawyer's obligation to maintain trust account records as required by Rules 4-1.145 to 4-1.155 is not affected by this Rule 4-1.22.
2. It is ordered that notice of this order be published in the Journal of The Missouri Bar.
3. It is ordered that this order be published in the South Western Reporter.
ORDER
1. It is ordered that effective July 1, 2016, subdivision 4-1.15(f) and subdivision 4-1.22 of Rule 4 be and the same are hereby repealed and a new subdivision 4-1.15(f) and a new subdivision 4-1.22 adopted in lieu thereof to read as follows:
4-1.15 Client Trust Accounts and Property of Others
* * *
(f) Complete records of client trust accounts shall be maintained and preserved for a period of at least six years after the later of:
(1) termination of the representation, or
(2) the date of the last disbursement of funds.
(2) the date of the last disbursement of funds.
Client trust account records may be maintained by electronic, photographic, or other media provided that they otherwise comply with Rules 4-1.145 to 4-1.155 and that printed copies can be produced. These records shall be readily accessible to the lawyer.
Upon dissolution of a law firm or of any legal professional corporation, the partners shall make reasonable arrangements for the maintenance of client trust account records. Upon the sale of a law practice, the seller shall make reasonable arrangements for the maintenance of client trust account records.
Complete records shall include at a minimum:
(1) receipt and disbursement journals containing a record of deposits to and withdrawals from client trust accounts, specifically identifying the date, source, and description of each item deposited as well as the date, payee, and purpose of each disbursement;
(2) ledger records for all client trust accounts showing, for each separate trust client or beneficiary, the source of all funds deposited, the names of all persons for whom the funds are or were held, the amount of such funds, the descriptions and amounts of charges or withdrawals, and the names of all persons or entities to whom such funds were disbursed;
(3) fee agreements, engagement letters, retainer agreements and compensation agreements with clients;
(4) accountings to clients or third persons showing the disbursement of funds to them or on their behalf;
(5) bills for legal fees and expenses rendered to clients;
(6) records showing disbursements on behalf of clients;
(7) the physical or electronic equivalents of all checkbook registers, bank statements, records of deposit, pre-numbered canceled checks, and substitute checks provided by a financial institution;
(8) records of all electronic transfers from client trust accounts, including the name of the person authorizing transfer, the date of transfer, the name of the recipient and confirmation from the financial institution of the trust account number from which money was withdrawn and the date and the time the transfer was completed;
(9) reconciliations of the client trust accounts maintained by the lawyer;
(10) those portions of client files that are reasonably related to client trust account transactions; and
(11) records of credit card transactions with clients to the extent permitted by law and the payment card industry data security standard.
(2) ledger records for all client trust accounts showing, for each separate trust client or beneficiary, the source of all funds deposited, the names of all persons for whom the funds are or were held, the amount of such funds, the descriptions and amounts of charges or withdrawals, and the names of all persons or entities to whom such funds were disbursed;
(3) fee agreements, engagement letters, retainer agreements and compensation agreements with clients;
(4) accountings to clients or third persons showing the disbursement of funds to them or on their behalf;
(5) bills for legal fees and expenses rendered to clients;
(6) records showing disbursements on behalf of clients;
(7) the physical or electronic equivalents of all checkbook registers, bank statements, records of deposit, pre-numbered canceled checks, and substitute checks provided by a financial institution;
(8) records of all electronic transfers from client trust accounts, including the name of the person authorizing transfer, the date of transfer, the name of the recipient and confirmation from the financial institution of the trust account number from which money was withdrawn and the date and the time the transfer was completed;
(9) reconciliations of the client trust accounts maintained by the lawyer;
(10) those portions of client files that are reasonably related to client trust account transactions; and
(11) records of credit card transactions with clients to the extent permitted by law and the payment card industry data security standard.
* * *
A lawyer shall securely store a client's file for six years after completion or termination of the representation absent other agreement between the lawyer and client through informed consent confirmed in writing. Such informed consent confirmed in writing may be made between the lawyer and the client at any point during the six years after completion or termination of the representation. If the client does not request the file within six years after completion or termination of the representation, the file shall be deemed abandoned by the client and may be destroyed.
The six year client file retention requirement shall apply to all client files where the completion or termination of the representation occurs on or after July 1, 2016. All client files where the completion or termination of the representation occurs prior to July 1, 2016, shall be governed by the previously required 10 years.
A lawyer shall not destroy a file pursuant to this Rule 4-1.22 if the lawyer knows or reasonably should know that:
(a) a legal malpractice claim is pending related to the representation;
(b) a criminal or other governmental investigation is pending related to the representation;
(c) a complaint is pending under Rule 5 related to the representation; or
(d) other litigation is pending related to the representation.
(b) a criminal or other governmental investigation is pending related to the representation;
(c) a complaint is pending under Rule 5 related to the representation; or
(d) other litigation is pending related to the representation.
Items in the file with intrinsic value shall never be destroyed.
A lawyer destroying a file pursuant to this Rule 4-1.22 shall securely store items of intrinsic value or deliver such items to the state unclaimed property agency.
The file shall be destroyed in a manner that preserves client confidentiality.
A lawyer destroying a file pursuant to this Rule 4-1.22 shall maintain the written record of the client’s consent of destruction for at least six years after completion or termination of employment.
Client files, except for items of intrinsic value, may be maintained by electronic, photographic, or other media provided that printed copies can be produced. These records shall be readily accessible to the lawyer.
Upon dissolution of a law firm, the lawyers shall make reasonable arrangements for the maintenance of client files. Upon the sale of a law practice, the seller shall make reasonable arrangements for the maintenance of client files, which includes written notice to a client as to the location of the client’s file.
A lawyer's obligation to maintain trust account records as required by Rules 4-1.145 to 4-1.155 is not affected by this Rule 4-1.22.
2. It is ordered that notice of this order be published in the Journal of The Missouri Bar.
3. It is ordered that this order be published in the South Western Reporter.
Day - to - Day
___________________________
PATRICIA BRECKENRIDGE
Chief Justice